Pair Correlation Between Apple and HP

This module allows you to analyze existing cross correlation between Apple Inc and HP Inc. You can compare the effects of market volatilities on Apple and HP and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Apple with a short position of HP. See also your portfolio center. Please also check ongoing floating volatility patterns of Apple and HP.
Investment Horizon     30 Days    Login   to change
 Apple Inc.  vs   HP Inc.
 Performance (%) 
Benchmark  Embed    Timeline 

Pair Volatility

Given the investment horizon of 30 days, Apple Inc is expected to generate 1.04 times more return on investment than HP. However, Apple is 1.04 times more volatile than HP Inc. It trades about 0.29 of its potential returns per unit of risk. HP Inc is currently generating about -0.03 per unit of risk. If you would invest  13,699  in Apple Inc on February 28, 2017 and sell it today you would earn a total of  713.00  from holding Apple Inc or generate 5.2% return on investment over 30 days.
Correlation Coefficient
Pair Corralation between Apple and HP
-0.26

Parameters

Time Period1 Month [change]
DirectionNegative AAPL Moved Down vs HPQ
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Diversification

Very good diversification

Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc. and HP Inc. in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on HP Inc and Apple is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Apple Inc are associated (or correlated) with HP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HP Inc has no effect on the direction of Apple i.e. Apple and HP go up and down completely randomly.

Comparative Volatility

 Predicted Return Density 
Benchmark  Embed    Returns 

Apple Inc

  
19 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Apple Inc are ranked lower than 19 (%) of all global equities and portfolios over the last 30 days.

HP Inc

  
0 

Risk-Adjusted Performance

Over the last 30 days HP Inc has generated negative risk-adjusted returns adding no value to investors with long positions.